The Dax in Frankfurt was down 6.8 per cent at the close – its worst day since the financial crisis in 2008.

The French Cac 40 lost eight per cent and in Madrid the Spanish market fell by 12 per cent. Italy fared the worst, losing a whopping 12.5 per cent.

Around four-fifths of revenues at FTSE 100 firms come from outside the UK, so analysts suggested the recovery could be as traders realised many could benefit as the pound lost ground against every single major currency.